This website uses cookies to ensure you have the best experience. Learn more

India And China: A Comparison Of Economic Growth And Development

2154 words - 9 pages

India and China are two countries that have experienced a rapid growth in population over the past few decades. Each of the two countries has a population in excess of one billion people and combined they represent over one-third of the world's population. As the population of these two countries has grown dramatically, so have their economies. In fact, their economies have developed so quickly that many economists have labeled China and India as the world's next major powers. Although the economies of these two emerging superpowers continue to grow they each face unique challenges in maintaining economic stability. (Chen, Kuan-I, 3)Achieving these levels of economic growth and gaining status as emerging world powers was not easy for India or China. "The present governments in both countries inherited economies torn by partition in the case of India and civil strife in China and exploited by foreign colonial interests." (Chen, Kuan-I, 3)India was faced with the difficult task of rebuilding their economy after winning their independence from the British. Freedom from colonial rule presented the newly independent Indian nation with many opportunities as well as challenges. The main challenge India faced was creating a viable economy that could maintain stability without foreign assistance.China sought to gain economic stability after civil war had plagued the nation. The Chinese Communist Party inherited this complicated task when they defeated the Nationalist Party and gained control over Mainland China in 1950. Before the Communist Party could implement any economic reforms they first had to unify a country that had been in turmoil for years.The governments of India and China were each faced with the complicated task of rebuilding their economies during the late 1940's and early 1950's. While each country had similar goals and expectations for economic development they were led by contrasting political systems. "India's plans were formulated and implemented within a democratic structure, whereas China has adopted a centralized planning technique." (Chen, Kuan-I, 3)After gaining independence from Britain there was a high degree of uncertainty in India with respect to the direction the country was headed. Indian leader Jawaharlal Nehru hoped to alleviate some of this uncertainty through his adaptation of the socialist model to the Indian economy. Under this model the government hoped to improve the economy by setting up a Planning Commission that was given the responsibility of creating Five-Year Plans for economic reform. The Five-Year Plans were intended to progress the country's economic development in a series of carefully orchestrated steps. In the Five-Year Plans the Planning Commission addressed issues such as industrialization, agrarian reform, land reforms, infrastructure development, and energy development. (http://en.wikipedia.org/wiki/Economic_reforms_in_India)The era of restructuring and planning known as the Nehruvian Era was followed...

Find Another Essay On India and China: A Comparison of Economic Growth and Development

China & India economic development Essay

3716 words - 15 pages United States, and India had moved up into fourth place (IMF Survey 2003). Today, these demographic giants account for nearly 40% of the world's population and nearly 20% of the world output. Having vast domestic markets, the two countries have followed inward-looking development strategies for a long period before deciding on opening up. For the last twenty years China and India have pursued opening up economic policies: they have lowered their

he role of economic geography in economic development and the impact of ICT on economic growth

2233 words - 9 pages countries are armed with good communications. On the contrary, some writers believe that geography still matters a great deal for economic interaction and for the spatial distribution of income.To discuss, I will concentrate on the role of economic geography in economic development and the impact of ICT on economic growth. From the existing inequality of economic development, we can see distance still matters in terms of economic transactions and

The Suffering of China as a Result of Economic Growth

1250 words - 5 pages The Suffering of China as a Result of Economic Growth China, as a crucial country in the world, is suffering from a variety of costs of economic growth while the economic growth is incredibly fast in recent years. A division between rich and poor, unemployment, and various external costs, unbalance of payments, unstable exchange rate consumption of non-renewable resources and the risk of inflation and banking collapse have been the

Corruption and its Impact on Economic Growth and Development

10433 words - 42 pages ProposalThe world view today is directed towards concepts of sustainable development and the acquisition of progressively higher standards of living .Growth without development is being criticised as being an ephemeral and increasingly deceptive indicator of the actual state of the economy .Concepts like population growth which erode economic growth and education and health which enhance human capital accumulation are gaining a lot of importance

China Economic Growth

972 words - 4 pages should be cleared that the growth rates of other variables need not to be the final explanation of GDP growth (Holz, 2008). It is given by: ΔY/Y=ΔA/A + α.ΔK/K + (1-α) ΔL/L. How long run aggregate supply impact growth is shown below. In China, the average economic growth rate from 1998-2013 was 9.6% (IMF, 2013). The major contributor of economic growth was capital especially the non-ICT capital and TFP. However, in the recent years TFP growth is

The Causal Relationship Between Financial Development and Economic Growth

725 words - 3 pages refers to Patrick’s identification of two possible patterns in the causal relationship between financial development and economic growth. The first, called “demand-following”, growth generates an expansion of financial development, as the real side of an economy develops. The second pattern is termed “supply-leading” and consists of the notion that the expansion of the financial system, reallocating resources from savers to investors, induces

Financial development & economic growth

2451 words - 10 pages usually brought about by technological innovation and positive external forces (http://www.investorwords.com/5540/economic_growth.html)The role of financial sector in economic growth has always been a debatable topic. Today world's view is directed towards the concept of sustainable development and achieving higher living standards. Growth without development is highly criticized as temporary and a misleading indicator of the actual state of the

Economic Growth: Sustainable Development

1525 words - 7 pages Introduction The concept of sustainable development was first introduced by IUCN world conservation strategy in 1980. Sustainable development is a technique of economic growth under which resources are used to meet not only the demand of present generation but also for generations to come. Marketing act as a business philosophy, and a collection of management techniques, orientated towards providing value to consumers, organisations and society

'Economic Growth is a Necessary but not Sufficient Condition of Economic Development"

894 words - 4 pages Explain this statement. Does Economic Development always lead to Improvements in Livind Standards?Economic growth and economic development are often thought to be synonymous but although the two are closely linked, there are crucial differences in their meanings. Economic growth is defined as 'a rise in the total output (goods or services) produced by a country'. It is measured by the percent rate of increase in the gross domestic product (GDP

With Reference to a company of your choice, discuss how SMEs in South Africa can contribute to economic growth recovery and development.

2206 words - 9 pages SMEs (small and medium –sized enterprises) are increasingly becoming one the most important enterprises with the most significant change in the economic situation of many countries. Government has since realised the importance of such business and started developing the SME sector. SMEs have reached a 7 percent growth rate and account for approximately 40 percent of the GDP (Gross Domestic Product). There are about 40 000 entrants every year

China versus India: Market Comparison

2246 words - 9 pages China versus India: Market Comparison India The globalisation of a company goes always along with a great amount of opportunities but also with many risks. India and China are both very interesting countries to move into. India became democratic after gaining independence from Britain in 1947. From then, up to the early 1990s India has had a mixed economy, which was identified by a lot of state-owned businesses, centralized planning, and

Similar Essays

China: Economic Growth And Regional Development

4286 words - 17 pages economic zones" (SEZ) along the coast. This Is because the chief architect of economic reform Deng Xiaoping, believed that a large country such as China could not achieve rapid economic growth in all its various regions simultaneously, both urban development and economic growth have been uneven across the country. For example, in 2001, 50 per cent of all FDI went to just three locations--Guangdong province, next to Hong Kong, Shanghai, and Jiangsu

Comparison Of China And India Essay

3711 words - 15 pages growth. Both countries have a multi-million strong Diaspora with the potential to assist in the countries' development, the Chinese Diaspora with capital and business know-how, and the Indian with education, business experience, and advanced technological knowledge.Reforms in agricultureAll we know about blistering performance of China and India, but mainly it is the role that agriculture has played in the transformation of these still heavily rural

Economic Growth And Development Essay

820 words - 3 pages Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social

Economic Growth And Development Essay

1354 words - 5 pages 1)Distinguish between economic growth and economic development.Economic growth is a measure of a county’s productivity and the total combined income of that country. Economic development is a measure of how developed a country is i.e. people’s standard of living. For economic development to occur, economic growth also is needed but economic development is not needed for economic growth to occur.BasisEconomic DevelomentEconomic